WINNIPEG, June 30 /CNW/ - Lanesborough Real Estate Investment Trust
("LREIT") (TSX: LRT.UN) announced today that it has arranged a second mortgage
loan in the amount of $500,000 secured by a second mortgage charge on the
Norglen Terrace property in Peace River, Alberta. The second mortgage loan is
from 2668921 Manitoba Ltd. ("2668921"), bears interest at 7.5%, payable
monthly and matures on June 1, 2010. The loan also provides for a $15,000
processing fee payable to 2668921. The proceeds of the second mortgage loan
are used for the pay-down of the first mortgage loan, with the remaining $2.4
million balance of the first mortgage loan extended with the existing lender
to June 1, 2010 at 7.5%.
LREIT also announced today that it has obtained a $2.7 million revolving
loan commitment from 2668921 for the purpose of providing operating advances
to LREIT. The loan will be secured by a third mortgage charge on the Riverside
Terrace property in Saskatoon, Saskatchewan, will bear interest at 7.5%
payable monthly and is repayable on June 30, 2010.
The loans were approved by the independent Trustees of LREIT. Arni
Thorsteinson, the Chief Executive Officer and a Trustee of LREIT, is also the
President of Shelter Canadian Properties Limited and its parent company,
2668921. Accordingly, Mr, Thorsteinson abstained from voting on the approval
of this matter.
The transactions are subject to all necessary stock exchange and
LREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbols LRT.UN (Trust Units), LRT.DB.F (Series F
Convertible Debentures) and LRT.DB.G (Series G Convertible Debentures). The
objective of LREIT is to provide Unitholders with stable cash distributions
from investment in a geographically diversified Canadian portfolio of quality
real estate properties. For further information on LREIT, please visit our
website at www.lreit.com.
This press release contains certain statements that could be considered
as forward-looking information. The forward-looking information is subject to
certain risks and uncertainties, which could result in actual results
differing materially from the forward-looking statements.
The Toronto Stock Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy or
accuracy of this press release.
For further information:
For further information: Arni Thorsteinson, Chief Executive Officer, or
Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505,